More than a dozen firms to offer IPO in next 3 years

The contribution of IPO’s (Initial Public Offer) to the Muscat Securities Market (MSM) has risen to 15 per cent from 3 per cent in a few years and the streak is robust, according to an assent management expert. Whereas the IPO contribution in 2003 was just 3 per cent, it touched 11 per cent last year and in Q1 2018, the IPO contribution to the MSM has shot up to 15 per cent.

“This is a remarkable growth and this is achieved due to the IPO listings towards the end of 2017 and a single listing in 2018”, said Ghadeer Mohammed Redha Hassan, Portfolio Manager, Asset Management, United Securities.

Speaking to the Observer at the OER Finance & HR Summit 2018 held at InterContinental Muscat on Wednesday, Ghadeer said the large capital companies continue to have a direct contribution to the turn over while small capital companies shied away in the contribution over the past 5 years.

“This is because of the fact that small companies are held by the promoters which are usually financial institutions and trading activity was not much. On the other hand, large capital companies continue to have trading and their contribution too is high. We expect the primary market segment of MSM to remain very active till 2021.”

She further said at least 12 companies will be going public by announcing their initial public offer in the next 2 to 3 years and they are scattered over all key sectors.

“Although it is very unclear as to how many IPO’s we will have this year, more than a dozen companies are expected to get listed with the MSM, in the next 2 to 3 years. They include downstream oil and gas companies, petrochemicals, and utility companies. According to OPWP, 4 power generating companies, 2 distribution companies and 2 water desalination companies will be getting listed with the bourse”, said Redha Hassan, adding, “we are looking for more companies with larger capital and have direct GDP contribution for the economy.”